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Home Loans - "Basic" vs. "Professional"

Choosing a home loan that suits your needs can often be a long and daunting process. Both a basic variable home loan and a professional package can save you thousands in interest payments. But which one is right for you?

A basic home loan is typically your ‘no frills’ loan, with minimum features and no ongoing fees. Whereas professional packages provide you with a very competitive rate and the features most borrowers want today, often for the cost of 1 annual package fee.

There are some important questions to consider when choosing between the two loan products;

• What is the loan going to be used for?

• What features and services do you need?

• Is the loan for investment purposes?

• How flexible does your loan need to be?

Typically, a basic loan would be more suitable for an investment property loan, while for business purposes or an owner occupied property, the package you need should be determined by the features and the financial services that you require.

When considering the right loan for you, you need to be mindful that although basic loans don’t have any on going fees, they are susceptible to rising interest rates and have fewer features.

On the other hand, if you opt for the professional package, be aware if you don’t utilise the key benefits and features you will be throwing money down the drain on ongoing monthly &/or annual administration fees.

In order to find the perfect loan type you need to establish what features you need, and whether the costs of these services outweigh the benefits.

Here at 6-Point Finance, our consultants have access to all the major lenders plus the widest range of non-bank lenders. In all, we have access to well over 400 loans, and can assist you in finding the perfect loan.